Essay on Service Line Development Case Study
A. Determine the feasibility of one of the proposed service lines in the attached “Service Line Development Case Study” by doing the following:
A1. Evaluate the demand for the new service line in the market area defined in the case study.
Trinity Community Hospital (TCH) has the opportunity to develop a new orthopedic service line. It is anticipated that there will be a huge increase in need for orthopedic services within the next 5 years; orthopedic cases will increase by 46%, joint and spine procedures will increase by 30% and outpatient joint and spine procedures will increase by 350%. The five year projection for the orthopedic shows gross charges per orthopedic surgical case to be $25,000 and each physical therapy treatment to be $275. Projected collections are 35% and a ratio of cost to charges is 31%. (Western Governors University, n.d.). The community lacks adequate orthopedic services and would benefit from an orthopedic center of excellence. There are two private healthcare facilities close to TCH, Community Hospital which is ten miles away and Regional Hospital which is seven miles away. These two facilities are competition for TCH and do possess orthopedic programs. The central location of TCH is advantageous as the population is expected to grow by four percent a year. The demand for orthopedic services will also grow. A Community Health Needs Assessment (CHNA) that was performed and it has been determined…